Monday, June 26, 2006

Stupid Stupid Senators

Right, so the US auto industry is in big big trouble. The only domestic brand that might be making money state-side is Chrysler, but they're owned by the Germans now.

With this in mind, why the hell are senator's getting in Detroit's face about fuel economy? Their proposed changes to CAFE will require a total paradigm shift in automobile design and manufacture. They want a 20% increase in passenger vehicle fuel economy. Ending the truck exemptions would require close to a 100% increase in fuel economy across that segment. That means massive investments in R&D. US auto companies don't have money for that sort of thing because they're barely breaking even as it is. Actually they're generally not breaking even at all. Their money is tied up just in (1) building cars people might actually want to buy for a change (2) playing quality catch-up with the japanese (3) trying to keep their union pension plans solvent.

Do you want to destroy the American-owned auto industry? Now is not the damn time.

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